MTN said on Wednesday it had paid $250m to the Nigerian government in "good faith" and had withdrawn a lawsuit against the Nigerian Communications Commission.
But it continues to negotiate an out-of-court settlement with the commission over its $3.9bn fine.
There was a lukewarm reaction to the news as the share price closed less than 1% lower at R129.05.
News of the fine has hammered MTN stock and, on Friday, it tanked 18% after a warning that its Nigerian woes would push down profits 20%.
MTN Group spokesman Chris Maroleng said the payment was part of the ongoing engagement with the Nigerian authorities and was done on the basis that it would go towards a settlement.
"MTN and the Nigerian authorities are engaging in good faith.
"We are confident we will arrive at an amicable resolution," Mr Maroleng said.
He would not give any timelines.
Philip Short, an analyst at Old Mutual Equities, said though he would not speculate, given the limited information, it "is clear that at least one party is more amicable".
He added: "Maybe a show of good faith is what the negotiations need for the two parties to come to an agreement."
Maqhawe Dlamini, chief investment officer at Mvunonala Asset Managers, said the payment in "good faith" could indicate that negotiations were progressing well.
"The withdrawal of the (court) case does offer a strong support of this view as well. While we may not be in a position to speculate on the figure, we are now confident it will be much lower than the initial figure, which was the whole point of the court challenge in the first place."
MTN was penalised for missing the deadline to disconnect 5.1-million subscribers who were not registered as required by the law.
The Nigerian market makes up 37% of MTN group revenue and the fine equates to more than twice its annual average capital spending over the past five years.
Last month, MTN Nigeria confirmed it would report profit of about $955m, which is far short of the fine. The fine was initially $5.2bn, but was cut 25%.
A man passes an MTN board in Lagos, Nigeria. Picture: AFP PHOTO/PIUS UTOMI EKPEI
MTN said on Wednesday it had paid $250m to the Nigerian government in "good faith" and had withdrawn a lawsuit against the Nigerian Communications Commission.
But it continues to negotiate an out-of-court settlement with the commission over its $3.9bn fine.
There was a lukewarm reaction to the news as the share price closed less than 1% lower at R129.05.
News of the fine has hammered MTN stock and, on Friday, it tanked 18% after a warning that its Nigerian woes would push down profits 20%.
MTN Group spokesman Chris Maroleng said the payment was part of the ongoing engagement with the Nigerian authorities and was done on the basis that it would go towards a settlement.
"MTN and the Nigerian authorities are engaging in good faith.
"We are confident we will arrive at an amicable resolution," Mr Maroleng said.
He would not give any timelines.
Philip Short, an analyst at Old Mutual Equities, said though he would not speculate, given the limited information, it "is clear that at least one party is more amicable".
He added: "Maybe a show of good faith is what the negotiations need for the two parties to come to an agreement."
Maqhawe Dlamini, chief investment officer at Mvunonala Asset Managers, said the payment in "good faith" could indicate that negotiations were progressing well.
"The withdrawal of the (court) case does offer a strong support of this view as well. While we may not be in a position to speculate on the figure, we are now confident it will be much lower than the initial figure, which was the whole point of the court challenge in the first place."
MTN was penalised for missing the deadline to disconnect 5.1-million subscribers who were not registered as required by the law.
The Nigerian market makes up 37% of MTN group revenue and the fine equates to more than twice its annual average capital spending over the past five years.
Last month, MTN Nigeria confirmed it would report profit of about $955m, which is far short of the fine. The fine was initially $5.2bn, but was cut 25%.
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